Returns can be filed at any time of the year: The Income Tax Act, 2023

BD LAW POST
25 Aug, 2023

The National Board of Revenue (NBR) has recently said that taxpayers can file their returns at any time of the year though in section 171 every tax payer is required to file return on or before 30th November on working days.

NBR's letter said that the news has created confusion among common taxpayers. It presents incomplete and inconsistent information.

A letter sent by NBR to a daily newspaper presents, "After November 30, you will no longer be able to file income tax returns or returns." There is no such provision in the Income Tax Act, 2023. According to the Income Tax Act, 2023, any taxpayer can file a return at any time.

As per section 171 every tax payer is required to file return on or before 30th November on working days and in the manner provided under section 173. However, if a taxpayer fails to file the return within the tax day, he can file the return at any time after the tax day and pay the tax as per section 174.

NBR said that no provision has been made in the Income Tax Act, 2023 for extension of time for filing returns. Because, taxpayers can now file returns at any time. In case of return filing before tax day, tax has to be paid as per section 173 and in case of return filing after tax day, tax has to be paid as per section 174.

Section 180 of the Income Tax Act, 2023 allows a taxpayer to file his due return in self-assessment mode, which was not possible under the Income Tax Ordinance, 1984. That is, the taxpayer can now file the return of any year at any time and can file it in self-prescribed mode. There is no legal impediment to it.

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